Certain financial institutions need to reform internal culture and meaningfully punish wrongdoing to better serve consumers and drive profits, a new report contends.
The assessment released Thursday from the Group of Thirty—which includes influential former central bankers, financiers and academics—said some firms are "misguided" in seeing accountability mostly as a means to avoid legal issues and fines rather than to ensure stability. The organization calls on banks to set better standards while cutting compensation for employees who fail to meet them.
"Banks need to restore the primacy of serving customers to help them achieve their financial goals, and of serving the communities and economies in which they operate," the report said. "Many leaders and banks are already engaged in this important endeavor."